Himfr.com reports that in September this year, China's Guangdong province exported toys to the amount of 2.2 billion U.S. dollars, a year-on-year increase of 26%. The upward trend is more or less consistent with the upcoming Christmas period. However, toy enterprises admit that next year orders will sharply drop, so the toy industry is turning to the domestic market out of necessity.

Himfr's analyst suggests that when domestic toy manufacturers shift to the domestic market they should develop a number of toy products with their own intellectual property rights, with sales marketing channels becoming essential. However, current domestic retail franchise toy stores are uncommon, and some franchise toy stores rely heavily on Japanese, South Korean and other foreign toy brands. Domestic brands are still scattered in some of the low-end wholesale markets, but the brands are yet to take shape. Department stores are currently dominated by foreign-branded toys, with imported toys making up 70% of toys on sale there, while domestic toy brands, with low market share, stutter with low brand awareness.

Recently, Europe and the United States set down more stringent standards and regulations for toy safety, with some countries setting even tighter guidelines. This means enterprises need to invest a great deal of manpower and financial resources. This, in addition to rising raw material prices, has meant that domestic production costs have increased by 20% to 30%. Many enterprises cannot afford such spikes.

On top of this, toy companies wishing to transfer their business to domestic markets, are required to obtain the domestic 3C certification. The authentication fee is also high. Furthermore, the heavy burden of taxes - the 5% sales tax, value-added tax of 17%, 33% of income tax – toy companies that turn to domestic markets face a far from optimistic situation. To survive, it is necessary to improve the consumer's toy consumption consciousness.